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What Trump's tax plan means for families in 20 U.S. cities

What Trump's tax plan means for families in 20 U.S. cities

Regardless of political affiliation, most Americans will be closely monitoring the upcoming vote for Trump’s Tax Cuts and Jobs Act. Introduced in late October by House Republicans, the plan calls for extensive changes that would constitute the most significant overhaul of the tax system in decades.

The plan encompasses a wide range of changes to the federal tax code, including reducing corporate tax rates, rolling back estate taxes, expanding family and child tax credits, and lowering the maximum mortgage interest rate deduction. Throughout the deluge of changes, two components stand out for their widespread relevance to American families: the simplification of tax brackets and rollback of deductions related to state and local taxes (SALT).

Under the new proposal, federal income tax brackets would reduce from seven tiers to four, with rates of 12%, 25%, 35% and 39.6%. Meanwhile, state and local tax deductions, currently used by nearly one-third of filers, would be capped at $10,000 per person for property taxes and eliminated entirely for income and sales taxes - a change intended to raise new revenue crucial to making the Trump plan economically viable.

A new study by SmartAsset's Derek Miller and Dave Colletta analyzes how the new tax plan would impact families in 20 major cities across America. This evaluation looks at how total income taxes would change under the Trump plan for each metro across four tiers of household income: low (20th percentile of earners), median (50th percentile), high (95th percentile), and highest ($1.5 million in household income).

While there are a number of factors that impact each family’s take-home paycheck, this analysis offers a revealing look at how the proposed tax reforms can play out for a significant portion of Americans. Check out the list to see how your taxes may be affected.